Vale and Anglo American to Shift Iron Ore Shipments from the Middle East to Asia

Category: Blog

Category: Industry News

Time:2026-03-20

Shipping analysts and market sources said on March 20 that Brazilian mining giant Vale and Anglo American’s Brazilian operations have begun shifting the destination of their iron-ore shipments from Middle Eastern customers to Asia. The de facto closure of the Strait of Hormuz has already affected at least eight vessels carrying Brazilian iron-ore fines and concentrates. The Cape Shangrila, which departed Brazil’s Port of Açu on January 29 with about 170,000 tonnes of concentrate for Anglo American, was originally scheduled to unload in Bahrain in early March. The cargo has now been rerouted via Singapore to China, though the final port of call has yet to be confirmed. Another vessel, the Ore Italia, was bound for Oman with roughly 400,000 tonnes of Vale iron-ore fines but has since been diverted to China’s Dongjiakou Port, where it is expected to arrive on April 4. According to data from Singapore-based Navigate Commodities, Anglo American has redirected two additional vessels from Bahrain to China, one of which is headed for Qinzhou. However, other ships are still proceeding to Bahrain as planned until the rerouting arrangements are finalized. The Mineral Nimbus, carrying about 180,000 tonnes of concentrate from Anglo American’s Minas-Rio project, set sail from Brazil’s Port of Açu on February 12 and was due to arrive in Bahrain on March 22. The vessel is currently drifting in waters off East Africa.

　　Shipping analysts and market sources said on March 20 that Brazilian mining giant Vale and Anglo American’s Brazilian operations have begun shifting iron-ore shipments from Middle Eastern customers to Asia.
　　The de facto closure of the Strait of Hormuz has already affected at least eight vessels carrying Brazilian iron ore fines and concentrates.
　　The Cape Shangrila, which departed from Brazil’s Port of Açu on January 29 carrying approximately 170,000 tonnes of concentrate for Anglo American, was originally scheduled to discharge in Bahrain in early March. The shipment has since been rerouted via Singapore en route to China, though the final port of call has yet to be confirmed.
　　Another vessel, the Ore Italia, was originally scheduled to carry approximately 400,000 tonnes of Vale’s iron ore fines to Oman but has now been diverted to China’s Dongjiakou Port, where it is expected to arrive on April 4.
　　According to data from Singapore-based Navigate Commodities, Anglo American has redirected two additional vessels from Bahrain to China, one of which is bound for Qinzhou. However, other ships are still proceeding to Bahrain as originally scheduled until the rerouting plan is finalized.
　　The vessel Mineral Nimbus, carrying approximately 180,000 tonnes of concentrate from Anglo American’s Minas-Rio project, departed from the Port of Açu in Brazil on February 12 and was originally scheduled to arrive in Bahrain on March 22. The ship is currently adrift in the waters off East Africa.
　　Spillover effect
　　Market sources report that two vessels previously anchored off Bahrain’s ports completed unloading over the past week. However, with most ships continuing to avoid transiting the Persian Gulf, the supply chains for pelletized iron ore and direct-reduced iron are expected to be affected. In 2025, Iran and Bahrain together account for approximately 18% of global seaborne exports of pelletized iron ore.
　　Another source added that, in order to manage raw-material inventories, the region’s major direct-reduced-iron producers are planning to bring forward their maintenance shutdowns to April, noting that current pellet inventory levels stand at 60–75 days.
　　Following weather-related disruptions to shipping in early February, Brazilian mining companies are working hard to maintain their shipment schedules, even if it means higher freight costs. Derek Langston, Global Head of Dry Bulk Research at Braemar, explains that the current surge in freight rates is primarily driven by rising fuel costs, rather than a direct response to Cape-size vessel detours.
　　Langston stated: “The Baltic Exchange’s assessment of freight rates on the Tubarão–Qingdao route reached US$27.96 per ton today, the highest level since September 2024, compared with US$23.45 per ton on February 27. In the short term, any increase in freight rates on the Brazil–China route is likely driven by rising fuel costs rather than fundamental market conditions.”
　　Although the impact of the conflict will depend on its duration and the extent of Iran’s threats to the Strait of Hormuz and the broader region, SSY’s senior dry-bulk analyst, Cara Hatton, expects that iron-ore carriers will experience a more muted initial impact than other dry-bulk vessel types.
　　She added: “Currently, only 0.3% of the Capesize fleet is positioned north of the Strait of Hormuz, effectively stranded in that region. Shifting a small volume of Brazilian iron ore exports from the Middle East to the Far East will have only a limited impact on the market. Of greater long-term significance for freight rates is the sharp rise in fuel costs, which will drive up voyage rates and potentially squeeze miners’ profit margins.”

Keywords: Vale and Anglo American to Shift Iron Ore Shipments from the Middle East to Asia

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